Taking Hospital Procurement To The Emergency Room

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There are a range of tried and tested principles that can be applied to turnaround hospital procurement. Let’s examine them.

11 Strategies To Transform Hospital Procurement

1. A strategic approach to procurement that is driven by business goals and financial objectives, with support from the very top of the organization.

2. Analyse spend, looking to see what categories are the biggest, or growing faster. Where price variability and waste, for example, are the greatest problem. This is the first step in implementing a new strategy.

3. Pooling of spend across different departments, sites and physicians. That includes Grouping Procurement Organizations and consortia. That will enable leveraging bulk purchasing to negotiate better deals from suppliers.

4. Centralization of procurement – where procurement decisions are coordinated centrally. Put procurement between sales reps and physicians.

5. New Procedures and Processes – Managing procurement inevitably means curtailing consultant or physician freedom to spend. However it is important to balance the imposition of new rules and procedures with consultation and engagement.

6. Collaboration – a team based approach that engages with physicians and recognises their needs, while at the same time relentlessly pursuing savings and tackling waste.